Legal Question in Business Law in California

Re: old payroll debt

That depends upon what type of bankruptcy you filed, whether the payroll company was listed as a creditor and whether your outstanding account(s) with the payroll company were listed on the schedules filed in your bankruptcy. The bankruptcy does not affect any debts which are not encompassed by the bankruptcy. You should consult your bankruptcy counsel for advice on this issue.

The statute of limitation for open book accounts is four years. However, if sued you must raise the statute of limitation as an affirmative defense or you will lose the right to raise it.

Re: old payroll debt

You haven't provided enough information about the situation. If the employer is a corporation, than the employer did not receive a discharge of the debt in the bankruptcy. If the employer was an individual, the debt might have been discarged if it was properly listed.

The statute of limitation to collect debt be based on an "obligation or liability founded upon an instrument in writing" is four years. The time to recover on the bounced check may have already passed.

Contact my office if you wish to discuss the matter further.